BNP Paribas Asset Management has launched its new global sustainability strategy, marking a step forward in the firm’s commitment to sustainability.
According to ESG Today, this initiative is a response to the evolving economic landscape shaped by various global crises and stringent regulations like the Sustainable Finance Disclosure Regulation.
BNPP AM, with its expertise in asset management, has been integrating ESG factors into its investment processes. The company has been a frontrunner in advocating for responsible investment practices and has made significant strides in ESG stewardship.
The new GSS by BNPP AM aims to broaden its range of sustainable and impact investment solutions. This includes a focus on climate change, nature-based solutions, and economic equality. The strategy is built around the concept of “3Es”: Energy transition, healthy Ecosystems, and greater Equality.
The GSS details a “six pillars” approach, encompassing responsible business conduct, ESG integration, proprietary sustainability research, stewardship and engagement, product range integration, and an internal Corporate Social Responsibility (CSR) strategy. It emphasizes the importance of investing in ESG data programmes and developing ESG research methodologies.
BNPP AM’s strategy also involves educational initiatives for employees and clients, enhancing communication to avoid greenwashing risks, and adapting to the industry’s changing dynamics driven by geopolitical, technological, and demographic shifts.
Jane Ambachtsheer, Global Head of Sustainability at BNPP AM, emphasized the resilience of their approach despite global challenges: “Since our first GSS in 2019, Covid-19, humanitarian, geopolitical and energy crises, and climate disasters have reshaped economies. Regulations including the Sustainable Finance Disclosure Regulation have shaped sustainability-related investing. Despite these transformational events, we found that the fundamentals of our approach have remained sound.”
Regarding the future, Ambachtsheer added, “Over the coming years, we believe the asset management industry will face far-reaching change, driven by a wider need to reallocate capital to a more sustainable and inclusive economy, taking into account geopolitical dynamics, evolving regulation, technological transformation and changing demographics. This impending and interconnected transition will require long-term investors to not only reposition their portfolios for sustainable growth, but to become a source of funding for the needed transformation.”
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